Panelists at the latest AGS conference used a unique word Wednesday in describing how to create new gamblers: “Gamblify.”
But they used a useful word in how to execute that conversion: “Patience.”
Four panelists and AGS executive VP Matt Reback discussed “Gamblifying the Gamer” Wednesday at AGS’ GameOn Conference in Washington, D.C. The session was one of eight presented during the day.
Creating new gamblers is a familiar topic for those in the casino business, who have fretted in recent years over an aging slot clientele.
“Gamblify means ‘Take someone and get them to do a wager based activity’,” Reback said. “I’m so glad we didn’t use the M word.
“I think it’s become hackneyed. People just throw it around and what I really want to talk about is non- traditional core gamers, and if it happens to include some millennials, great.”
He noted that the video game console was created in 1977, Space Invaders launched in 1978 and Nintendo hit stores in 1985.
“So every person born since then has been immersed in these products,” he said.
Sameer Gupta, co-founder of Golfstream, said there has been rapid adoption in certain areas, “although I’m not certain it’s on the casino floor. But the alternative products are going to have compete against existing, profitable products.
“Every year you’ll see a few new entries and at some point, there will be a tipping point.”
Lovell Walker, executive director of interactive gaming development for MGM Resorts, said: “There has to be a level of patience. You’re not going to knock it out of the park on the first try.
“I really don’t think it will come from the operators. I think it will come from the users, and them telling us what they want,” he said. “Gaming isn’t No. 1 on their list. It just isn’t. You have to build something intriguing, then they may partake.
But, like Reback, Walker cautions against using “the M word.”
“I’m 30 and my brother is 21, but you can’t talk to him the same way you talk to me. It’s just different. You can’t treat us all as one cohort.”
He also stressed the importance of having management’s buy-in that runs all the way to the top.
“If you’re not authentic when you do it, you’re exposed as a fraud and you’ll be abandoned anyway.”
E-sports tournaments on Friday nights have been a success at the Downtown Grand Hotel & Casino in Las Vegas, according to Seth Schorr, CEO of Fifth Street Gaming. “We’re getting 75 people to come into a small lounge, and spend thousands on food and beverage. Would that be successful at Aria? Maybe not.
“To bring in a new demographic has to be measured in a different way,” he said. “One slot against another, you measure against the house average and it’s straightforward. But if the objective is to bring in a new audience, I’d argue $40 of a new person’s money is better than $140 from a person who would spend it anyway.”
He suggests that while Las Vegas has constantly reinvented itself, bringing in new revenue streams with nightclubs and shows, the casino floor itself hasn’t changed.
“We got excited when we saw slot rows condensed and they put them in little pods,” he said. “But even look at the Wynn. Everything about it was different — except the casino.”
Robin Zetts, director of casino operations at Harrah’s Resort Southern California, said finding floor space has been a challenge. She said the best way to involve interested players is to have an ambassador nearby to show them how the machines work.
“You’re playing with two, four people and one person’s going to win the pot,” she said. “A lot of people are used to playing alone. They don’t play slot machines with someone.”
One alternative to traditional slots was co-founded by Gupta, and is called Golfstream. The indoor laser golf course changes shape, so you can play a traditional course or a mini-game. He says the product reaches a pretty defined group — golfers who like to gamble — and puts it on a casino floor.
“They are not empty wallets,” he said. “This demo spends more money on restaurants, entertainment, video games and concert tickets than ever before. The more digital the generation, the more they spend on retail experiences. You see that when it comes to the revenue.”
Schorr said one of the best things to come from the Las Vegas e-sports tournament is understanding the behaviors of the new audience.
“People who play fighting games are different than those who play shooting games and their drinking habits are different,” he said, noting that League of Legends players, with headsets on, are different from Mortal Combat players are standing up playing against someone, hooting and hollering.
“Mortal Combat has a much more gregarious audience. And it’s known that there’s a lot more side betting, and that’s a behavior of that audience,” he said. “The level of commitment and the patience, in my opinion, will pay off and the risk and reward makes good economic sense.”
The GameOn Conference, in its second year, was created by AGS. It concludes Thursday. AGS representatives are taking some of the floor time but also encourage other gambling topics. (Look for an AGS roundup here on Thursday.)
For example, American Gaming Association CEO Geoff Freeman spoke earlier, reminding attendees that with revenues of $70 billion, the gaming industry is more influential than ever.
“That bodes well for things we can drive in the future,” he said. “We’re also driving the economy in many areas.”
He noted 2016 was a landmark year for the industry, with Las Vegas obtaining an NFL and NHL franchise and a presidential debate being held in the city, not to mention the election of a former casino owner as president.
“And the act of owning a casino was never raised in during the campaign,” he said.
